EUR/GBP Outlook: Bulls cracked important fibo barrier and hit new highest since late March

Slobodan Drvenica Windsor Brokers

EUR/GBP

The cross rose to the highest level in nearly two months on Thursday, as pound is weighed by negative interest rate talks and conflict in UK/EU trade talks.
Fresh extension higher (following Wednesday's 0.6% advance which eventually broke above the top of thinning daily cloud) broke above pivotal Fibo barrier at 0.8987 (38.2% of 0.9498/0.8670) and cracked psychological 0.90 resistance.
Better than expected UK PMI's inflate pound but so far without stronger negative impact on bulls.
Positive daily studies underpin the rally which needs close above 0.8987 to confirm positive signals, generated on break above important technical barriers, with targets at 0.9084 (50% retracement) and 0.9100 (round-figure) coming in focus.
Broken daily cloud top (0.8931) needs to hold downticks to maintain bullish bias.

Res: 0.9029; 0.9084; 0.9100;0.9182
Sup: 0.8961; 0.8931; 0.8890; 0.8863

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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